Ford Motor Co. on Jan. 25 reported a loss of $12.7 billion for 2006, the worst loss in its history, due to large restructuring and other costs that amounted to close to $10 billion last year. Ford reported a full year earnings per share loss of $6.79 and a quarterly loss of $3.05. During the fourth-quarter of last year Ford said it lost $5.8 billion compared with a loss of $74 million in the same period of 2005.
The company has plans to return to turn things around. "We began aggressive actions in 2006 to restructure our automotive business so we can operate profitably at lower volumes and with a product mix that better reflects consumer demand for smaller, more fuel efficient vehicles," said Ford chief executive Alan Mulally in a statement.
Ford's sales of its pick-up trucks and big sports utility vehicles (SUVs) suffered last year amid a surge in oil prices to record highs, and as American consumers sought out more fuel-efficient cars and trucks. "We fully recognize our business reality and are dealing with it. We have a plan and we are on track to deliver," Mulally, a former Boeing executive hired by Ford in September, said in a statement.
Operations in South America and Europe were profitable last year.
The financial services division, including Ford Motor Credit earned $1.9 billion last year.
Source: IndustryWeek Staff, Agence France-Presse